“Sure it does on those things but this will be on everything. ‘
Actually it is worse than that. It is on everything, several times.
The dairy farmer sells raw milk to the dairy and pays 16% on the value of raw milk.
The dairy food company sells the pasteurized milk to the cheese company and pays 16% on the added value between the raw and Pasteurized milk.
The cheese maker sells the cheese to a deli and the deli pays 16% on the added added value of cheese over the Pasteurized milk.
The deli buys the cheese and adds 16% to the added value between a block of cheese and a sandwich.
At no stage in this process does the VAT replace income tax or sales tax.
A VAT raise huge amounts of money by essentially taxing the same item over and over again.
This item in the tax plan by Senator Cruz is a good reason to not vote for him. The liberals would love this tax because they’d try to raise it as a hidden tax.
Well done; you understand this topic!
I’ve lived in the UK where the VAT is 20%. This is a bad tax